The Missouri Public Service Commission announced Lake of the Ozarks area natural gas customers of Summit Natural Gas of Missouri will see an increase in the natural gas rate, effective Friday.
Residential customers of Summit in Miller, Morgan and Camden counties currently pay 39 cents per 100 cubic feet of natural gas. Under the change, the rate will increase six cents to 45 cents per 100 cubic feet of natural gas. According to the Summit, the increase will cause an average winter month residential gas bill to increase by approximately $3.44.
PSC officials said the change was made to reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment (ACA) factor. The ACA is a mechanism which tracks any over-collection or under-collection of actual natural gas costs over a 12-month period. The net over- or under-collected balances are subsequently either refunded or collected the next year.
PSC officials said the wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the PSC. The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand and the weather. The Missouri Public Service Commission conducts an annual review to ensure regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Summit Natural Gas serves approximately 20,600 natural gas customers in Missouri.